Public Statements

The Consumers Council of Canada has released a letter sent to first and finance ministers, in which it joins with FAIR Canada and CARP in expressing its concern about the potential for a compromise of investor and consumer protection inherent in some proposals for the cooperative capital markets regulator.

The Consumers Council of Canada wrote a letter May 19, 2017 to the Prime Minister and Finance Minister of Canada and provincial first and finance ministers, in which it joins with FAIR Canada and CARP in expressing its concern about the risk of a compromise of investor and consumer protection inherent in some proposals being discussed for the cooperative capital markets regulator (CCMR).

The Council has raised its voice repeatedly about the need to facilitate a stronger, more capable consumer voice in internal trade harmonization initiatives of the federal and provincial government, of which CCMR is one.

The process of regulatory harmonization should not be permitted to devolve consumer protection to the lowest common denominator, and consumer representation in regulated areas of the economy should not suffer a setback as a result of these efforts. Competition and the requirement to satisfy consumers should not be lessened.

The CCMR, as currently proposed, would set aside important regulatory progress made by the Ontario Securities Commission to enhance investor protection. The OSC has been a leader in Canada in making serious changes to reduce harm to investors, which has existed for a number of years and still exists today. It has done this through the creation of an investor advisory panel, to inform its policy and rule making. It has been a proponent of addressing investor harms by introducing a best interest standard.

The Ontario securities law establishes the regulatory purpose that investors be protected from unfair and dishonest practices. It is the OSC’s position, and the Council’s, that this requires registrants to deal with investors on a best interest basis; that investors’ interests not be subordinated to the interests of any registrant — whether individual advisor or dealer.

The Consumers Council of Canada has advocated recently for firm action on unsolicited, door-to-door sales, new protection for users of alternative financial services such as payday loans and definition of qualifications, with licensing, for home inspectors. The Ontario government took action in all three areas through its Putting Consumers First Act passed April 10, 2017.

The Consumers Council of Canada has advocated recently for firm action on unsolicited, door-to-door sales, new protection for users of alternative financial services such as payday loans, and definition of qualifications, with licensing, for home inspectors. The Ontario government took action in all three areas through its Putting Consumers First Act passed April 10, 2017.

Ontario's Act will:

Make it possible to ban unsolicited, door-to-door sales on prescribed household appliances such as water heaters, furnaces, air conditioners and water filters.

Offer new consumer financial protections through rules for alternative financial services such as payday loans, including extended repayment periods and more time between loans, as well expanded rules against unfair debt collection practices.

Regulate the home inspection industry through mandatory licensing and set qualifications for home inspectors, as well as minimum standards for contracts, home inspection reports, disclosures and the performance of home inspections.

"The Council has conducted research, engaged in public consultations and addressed legislators on behalf of consumers across Canada about these problem areas," said Council President Don Mercer. "We are pleased to see some other provinces addressing these issue areas as well. Some have acted already. Some are contemplating action. The Council welcomes the action taken."

Persons interested in more information about Ontario's new act should click here.

"These three measures also better position Ontario consumers as they look toward improvements to their homes in Ontario's active housing market, in which many consumers are upgrading homes after purchase," said Mercer. "Governments are encouraging consumers to make their homes more energy efficient as part of efforts to respond to climate change. Consumers should act on good information, deal with quality service providers and avoid pernicious financing schemes when upgrading their homes."

The Council is currently working to complete research entitled Incenting Energy Efficient Retrofits: Risks and Opportunities for Consumers.
This research focuses on the risks and opportunities for consumers of home energy efficiency retrofits and renovations that are driven by government and utility incentives. This study will examine how consumers benefit from incentive programs and what risks they assume when renovations or retrofits are completed. The study, expected to be released later this Spring, will examine the safeguards governments and utilities have adopted to protect consumers from renovations that are not properly executed. The Council has received funding from Innovation, Science and Economic Development Canada's Contributions Program for Non-profit Consumer and Voluntary Organizations for this research. The views ultimately expressed in the final reports of this research will not necessarily be those of Innovation, Science and Economic Development Canada or of the Government of Canada.

In preparing its 2016 report Consumer Experiences with Rent-to-Own, the Council conducted an examination of the rent-to-own offerings available to typical consumers. The research provided a perspective on two questions: 1) What information do rent-to-own providers deliver to potential customers prior to completing a rent-to-own transaction? 2) To what extent does this experience meet relevant provincial rules, including consumer protection rules?

Consumer Experiences in Online Payday Loans, 2015, improved the understanding of consumers' experiences when they look for payday loans online, by examining the online payday loan services available to typical Canadian consumers.

The Council's 2009 report Renovation Rip-Offs: Problems and Solutions highlighted reasons for consumer problems in the home renovation industry. It contains recommendations for consumers, business and government aimed at improving the experience with home renovations.

Research for Consumers Council of Canada finds rent-to-own transactions are an expensive way for consumers to acquire merchandise, with periodic payments typically totalling 2 to 3.5 times the price of the same goods at conventional retailers.

Rent-to-own transactions are an expensive way for consumers to acquire merchandise, with periodic payments typically totalling 2 to 3.5 times the price of the same goods at conventional retailers, a research study released by the Consumers Council of Canada finds.

Consumers pay 40 to 100 per cent more through periodic payments at a rent-to-own store than if they were able to purchase the item from that store at the outset. In addition, rent-to-own "buy it today" prices are typically higher than other retailers, from 20 per cent higher for refrigerators to 150 per cent higher for laptop computers, the study found. The study was based on store audits conducted between late November and mid-December 2015 at 63 rent-to-own stores across Canada.

The audits identified a number of practices that risk violation of existing consumer protection laws and others that are allowed, but place high risk on consumers. While provincial consumer protection law (outside Quebec) relies on sections of the Criminal Code of Canada to protect against unreasonably high lending rates, it is unclear these limits protect rent-to-own consumers.

Researchers and auditors entered stores posing as potential customers and recorded the prices, purchase options, service components and sales claims made. Each audit included more than 30 different questions. Rental and purchase prices were compared against prices for identical merchandise at other retailers.

Other findings arising from the research:

Canadian consumers have few of the protections provided to similar consumers in other countries. Forty-seven U.S. states have laws to specifically address rent-to-own transactions. U.K. regulators are conducting thorough reviews of firms’ practices and fining those that violate existing laws. Australian regulators are reviewing legislation and also fining violators. In Canada, many of the best existing consumer protections are measures by vendors that mirror U.S. requirements.

It is difficult for in-store consumers to view contract terms and conditions until they are presented for endorsement. As a result, many of the legislated protections – which require disclosure in the agreement – are less effective than they could be.

Canada’s largest firm claims in-store and on its website to provide “free delivery” when delivery is a component of a separately charged and disclosed fee. Similarly, certain benefits promoted as features available through the purchase of optional services are actually available to all consumers.

There are many common industry practices which disadvantage consumers. Firms are not required to disclose a “buy it today” price. There is no requirement that weekly and monthly rental prices be equivalent, and vendors have considerable flexibility on lease durations and whether to allow consumers to maintain purchase rights after a late payment.

"The rent-to-own industry is designed to serve consumers without savings and access to conventional credit. They are already disadvantaged compared to most consumers," said Consumers Council of Canada President Don Mercer. "The higher costs of using these merchants can make it more difficult for these consumers to pay down debt, improve their credit rating or accumulate savings. It’s far from clear that consumers are adequately protected through current civil and criminal law and its enforcement."

Consumers should review any agreement,ask questions and seek qualified independent advice if necessary, so they completely understand contracts they are offered, and the implications for their financial well-being, before agreeing to them. Consumers should also report any questionable practices they may experience to their province’s consumer protection office. For a list of those offices go to: http://www.consumerhandbook.ca/en/contacts/provincial-territorial-offices

The Council’s report includes a number of recommendations to improve consumer protection in the industry.

The Consumers Council of Canada has received funding from Innovation, Science and Economic Development’s (ISED) Contributions Program for Non-profit Consumer and Voluntary Organizations. The views expressed in the Council’s report are not necessarily those of ISED or the Government of Canada.

A board of directors and executive officers have been chosen to lead the Consumers Council of Canada in 2016-17. Don Mercer has returned to the board after a two-year hiatus from the role and has been named President. Three new board members were named.

A board of directors and executive officers have been chosen to lead the Consumers Council of Canada in 2016-17. Don Mercer has returned to the board after a two-year hiatus from the role and has been named President. He replaces Aubrey LeBlanc, who remains as a member of the Council's board of directors.

Three new directors were named at the Council's annual general meeting to the board of directors:

Julie Cassie, a consultant and a researcher-professor of family studies at Université de Moncton with a doctorate in francophone minority education from Université de Moncton.

Sally Southey, president of Southey Consultants and formerly Director General Strategic Communications and Parliamentary Affairs, Canadian Radio-television and Telecommunications Commission; Vice President, External Relations and Communications, Natural Sciences and Engineering Research Council (NSERC); Minister-Counsellor Public Affairs, Canadian Embassy, Washington, D.C.; Director of Communications for different sectors for Industry Canada, Senior Policy Analyst, Communications, Privy Council Office; and Chief Media Relations, Canadian Human Rights Commission.

Christine Simpson, a consultant with extensive knowledge of consumer product safety issues developed over many years of public service as a Consumer Product Safety Officer at Health Canada

The Council's board of directors and general membership extended thanks and appreciation to former Council secretary Agni Shah and members Les Jacobs and Elizabeth Nielsen for their service to the Council on its board of directors.

Dennis Hogarth was reappointed as Vice President, Howard Deane as Treasurer and Simon Wong was newly named as the Council's secretary.

The rest of the members of the board, who are continuing their service for 2016-17, are:

Consumer group Option consommateurs is releasing a video series on YouTube called "A Moment of Privacy".

“The Connected Car", features Philippa Lawson, a privacy lawyer. This video is based on a research published by the BC Freedom of Information and Privacy Association (FIPA).

"Fitness Trackers" features Andrew Hilts, from Open Effect.

"Young Canadians and Privacy" features Matthew Johnson, from MediaSmarts

This four-video series seeks to popularize results from some of the privacy research projects made possible by the Contributions Program from the Office of the Privacy Commissioner of Canada. The video gives the opportunity to researchers that published a study on privacy in the last few years, to explain, in simple terms, some of the results of their study.

Still to come, OC will offer a video on:

The protection of Canadian data in the cloud (with Heidi Bohaker, associate professor at the University of Toronto)